InfoSAWIT, KUALA LUMPUR - Dorab Mistry, a veteran dealer in vegetable oil industries mentioned, stagnant production and lack of stock would be the main factors for palm oil to be more expensive in this very short. He predicted, palm oil production in Indonesia, as one biggest producer in the world would decrease about one million tons in 2024, while the production in Malaysia would be flat.

In an interview at Palm Oil Price Outlook and Lauric Conference in Kuala Lumpur, Mistry told that the trend would be available for the next five years. The factors, such as, old trees, weather, and a little improvement in agricultural practices would be the issues for the industries to face.

Though other vegetable oil production could be escalating this year, palm oil would be left behind in the increasing production. This would lead to disappointed supply issue, namely because palm oil is mostly cheaper than other alternative oils.

As quoted from Reuters, Mistry also explained that tropical oil is sold more expensive than soyoil and sunflower oil in some countries. This is unusual phenomenon and could be happening until October when palm oil production would hit seasonal peak.

Palm oil price at stock markets escalated about 6% this year at RM 3.942 per ton on Tuesday in Kuala Lumpur.

He als told the unpredictable weather would be the main factor for plantations. Though the condition is still good now, it would support new harvest and press seeds and vegetable oils to the lowest level from the last three years. This would not last for long. (T2)